Senate File 2976 would expand the eligible uses of Minnesota’s state housing tax credit to allow donations to support not only capital but also supportive services that make supportive housing effective.

Ben Helvik Anderson, vice president for policy and organizing at Beacon Interfaith Housing Collaborative, told the committee that service dollars are the scarcest resource for supportive housing and that allowing the state housing tax credit to fund supportive services would help long‑term preservation and operation of supportive housing by enabling fund‑raising for both capital and service reserves.

Committee staff offered a technical clarification to the bill’s language referencing a statutory section; the committee adopted an author's technical amendment (A1) and a subsequent A2 amendment that readjusted proceeds of a 2023 metropolitan sales tax for housing—shifting 25% from metropolitan cities to metropolitan counties. Senators debated whether counties or cities are better positioned to allocate the funds and some members signaled they would not support the shift; Senator Port said the change aims to expedite housing production through county involvement. The A2 amendment passed by voice vote.

Senate File 2976 was laid over for possible inclusion in a future omnibus; the transcript does not record a roll‑call vote on final adoption and several senators requested continued conversations about the distribution formula.